While the tech industry is booming, with venture capitalists throwing money around in Silicon Valley like there is no tomorrow, some are beginning to get a little worried. Of course, we need to encourage innovation and creative ways to solve problems. But are we overvaluing the industry? Especially when it comes to tech based startups, this is quite a worry. There are some people who are being to speculate whether this will be the next dot com crash or housing bubble burst we have experienced in the last two decades.
As a result, many people are looking to invest elsewhere, especially in small to medium size businesses that belong to an industry that is readily growing and would not be affected by any possible economic downturn that results in a tech bubble burst. Industries, such as corporate wellness as well as trucking have been doing well in part thanks to this skepticism. For instance, the trucking industry provides jobs to approximately 1 out of every 14 US citizens. This infographic explains some of the other benefits of the trucking industry not only for individuals, but for the American economy as a whole.
Another field that has been doing very well in terms of further development and interest in the wake of a possible tech industry bubble is the development of sustainable materials as well as sustainable energy, such as solar power. People are recognizing that environmental issues are very important and that we need to make more of a concerted effort as a society to invest in finding solutions to environmental problems.
But despite speculation, is there really a big chance of this supposed tech industry bubble happening and then popping? Well, the jury is still out on that one, unfortunately! Some suggest that we very much are in a tech industry bubble, and that the risk of a tech bubble burst sometime soon is a very real possibility and that we must not be so naive to think that it cannot happen to us. This bubble is caused by over-valuing companies and being willing to pay more and more money for ideas for apps or businesses. Every venture capitalist is hoping to be the one to find the next Uber or the next Facebook. As a result, the venture capitalists are willing to bid higher and higher in order to get a piece of a proverbial pie that has not yet even been baked.
However, there are others who claim that what is happening in the world of app development is not the same as what happened with the dot com bubble burst, and that there are nuanced differences between these situations. At the end of the day, it is hard to tell what will happen –but we are not suggesting that everyone quits their jobs in the tech industry out of fear, and we certainly hope that this possible threat does not stifle app developers’ incentives to creative innovative new apps for us to enjoy.